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Key Takeaway
- Litecoin set a new annual high at $ 89.70 after breaking the February 2020 high.
- Data on the chain shows low selling pressure from whales, indicating more room for upward growth.
- The William Alligator Indicator shows an uptrend which emerges over higher time frames.
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Litecoin rose to a new 2020 trading high after breaking through the February 2020 high with relative ease. The strong bullish momentum that LTC experienced last week could easily extend to this week as institutional investors turn to the Bitcoin fork as an alternative investment.
Litecoin bulls aim for $ 100
The weekly close above the February high suggests that a potential bullish burst towards the $ 100 resistance zone is highly likely.
The technical indicators on the higher time frames also show ample room for upward movement in the following days, with the definitive weekly bullish target being near the $ 140 level.
Looking at William’s alligator indicator, the near-term bullish outlook remains in place as the price is trading above the $ 80 support level, which coincides with the 5-day moving average (green).
Failure to maintain the $ 80 support level could see LTC perform a short-term price correction towards the $ 75 to $ 70 range for support. Product buyers are likely to suffer lurking in the aforementioned support region as they await new highs in the medium to long term.
On-chain analytics provided by Feeling it currently does not show any significant selling pressure from whales. Additionally, daily active addresses are decreasing as prices continue to rise.
This metric suggests that traders continue to hold Litecoin during this period of price expansion.
This indicator should be closely monitored if LTC approaches the $ 90 or $ 100 levels, as a spike in daily active addresses can indicate profit taking for larger LTC holders.
Data analysis from Feeling It also shows that Litecoin addresses holding 1,000,000 to 10,000,000 coins have steadily increased their balances since October 27.
This metric highlights that the whales have increased their balances, coinciding with the recent bullish rally above the $ 65 resistance zone.
Addresses with 10,000-100,000 coins sold some of their holdings, indicating short-term speculators took profit towards the $ 84.50 annual resistance. In contrast, addresses holding 100,000-1,000,000 coins have held their balances, suggesting they are neither selling nor buying more coins.
With the positive technical and on-chain environment, LTC could be in a good position to enter a much higher trading range this week if the bulls manage to break out of the $ 100 psychological resistance level.
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